Laguna Blends Inc. (LAGBF) is a network marketing company focused on the generation of sales through independent affiliates. Leveraging innovative tools and technologies, the company's affiliates are able to build international businesses from their own homes while effectively capitalizing on the performance of some of the world's most rapidly expanding, in-demand markets.
To date, Laguna's primary focus has been on the hyper growing hemp food and beverage marketplace. As part of these efforts, the company introduced to market Caffe, a hemp-infused instant coffee product; and Pro369, a water soluble hemp protein powder.
- Focused on Hyper-Growing Hemp and Food Marketplace
Initial Offerings Create Model for Sustainable Growth
Rapidly Expanding Network of Independent Affiliates
Utilizing Virtual 3D Technology for Sales & Training
Established Business in Canada and the United States
Sales & Marketing Strategy
Laguna utilizes a network marketing model in which independent affiliates market the company's products to family, friends, and other individuals in their social network. As independent contractors, affiliates earn a commission based on where they are ranked within the hierarchy of others sales people for the company. This provides the affiliates with a monetary incentive to sell the products, as well as incentive to recruit others to work under them to build a greater commission base.
According to the Direct Selling Association (DSA), 18.2 million people were involved in the industry in 2014, generating estimated retail sales of $34.5 billion. While direct selling is one of the oldest ways Americans have chosen to independently work in the past, the Internet provides an environment of unprecedented sales potential within this business model.
The network marketing model typically enables rapid revenue growth, especially for companies selling popular consumer items. In this respect, Laguna has identified and launched highly marketable products that are quickly garnering attention among independent affiliates.
To lead the Network Marketing Industry with innovation and technology and offer a high quality product experience with an emphasis on the health benefits derived from Hemp.
In early March 2016, the company launched its protein coffee beverage through 135 independent affiliates throughout the United States and Canada, and in less than a week grew its affiliate base by more than 100 percent to include 278 independent marketers. As of April, this count increased to more than 700 affiliates. This rapid growth demonstrates the high levels of demand for functional beverage products across North America, as well as the company's ability to attract a significant number of affiliates in such a short time period.
Laguna is the first network marketing company to use virtual 3D technology to enable affiliates to train, recruit and drive sales via a simple interactive platform. This cutting-edge, cloud-based, immersive platform enables independent affiliates to expand their customer base without the need to travel for meetings and training, which can be conducted on a 365/24/7 basis.
This virtual-based sales and training system has the potential to significantly reduce overall coporate costs while yielding greater productivity levels among Laguna distributors.
Core competencies, such as customer service, warehousing and order fulfillment, and product manufacturing are carried out by third-party vendors. This strategy minimizes fixed costs, lowers the break-even point for profitability, and ensures scalability at minimum cost.
With growth through its marketing network underway, Laguna is focused on expanding its product line, taking advantage of the nutritional and health-related benefits of the hemp seed. Initially focused on the functional beverage business within this realm, Laguna is also exploring additional categories such as cosmetics and skin care, cannabinoids (CBDs), hemp oil, and other product categories.
After more than a year of research and development to invent a completely unique coffee product, Laguna launched Caffe, a delicious, functional beverage served as an instant black coffee. Approximately 20% of each package contains whey and hemp protein, which makes Laguna's flagship product very different than its competition in the direct sales and retail coffee business.
Pro369 is an infused plant-based functional beverage that combines ginseng, and HempOmega®, which contains 13 grams of hemp protein. This unique single serving "on-the-go" hemp protein is served cold and comes in four flavors:
- Vanilla Caramel Flavor
Tropical Fruit Flavor
Mixed Berry Flavor
Chocolate Banana Flavor
5 health claims with one product puts Pro369 in a league of its own.
Pro369 is the first hemp protein powder to be registered with Health Canada as a natural product, and features the following approved health claims:
- A source of protein that helps build and repair body tissues.
Source of amino acids involved in muscle protein synthesis.
Assists in the building of lean muscle.
An adaptogen to help maintain a healthy immune system.
Supportive therapy for the promotion of healthy glucose levels.
HempOmega® is an environmentally sustainable, vegetarian source of Omegas 3 and 6 that boasts a superior nutrient profile. A water soluble, homogenous, powdered ingredient, it can be easily integrated and/or manipulated, with no unpleasant taste or chemical contamination – opening up entirely new product formulation opportunities. HempOmega's greater ability to endure the digestive process delivers unmatched bioavailability, thereby maximizing its potential health benefits.
As a network marketing company, Laguna is strategically positioned to quickly grow in the rapidly expanding hemp market space. Through the commercialization of Caffe and Pro369, Laguna is also establishing a foothold in two other high-demand global markets.
The main markets for hemp are currently health foods, functional foods, ingredients, natural body care and cosmetics, birdseed, and pet/veterinarian markets. The principal hemp markets are for hemp seed, which attracts commercial interest because of its high protein and essential fatty acid profile. Most hemp seed (whether in seed, oil, flour/powder or in finished foods) goes into the health food sectors. There is also a growing market in cosmetics and body care products for hemp oil, areas that may be of interest to Laguna in the future.
- According to the Hemp Industries Association, retail sales of hemp food and body care products has grown from US$93 million in 2011 (an 8% increase year to year) to $186 million in 2014, an increase of 21.4% over the previous year.
Retail sales of all Canadian-derived hemp seed products are forecast to double in 2015 to $100 million.
In January of 2016, the Industrial Hemp Farming Act of 2015 was introduced to Congress, which seeks to amend the Controlled Substance Act to exclude industrial hemp from the definition of marijuana. Upon potential passage of the Act, along with legalization efforts at both the state and federal levels, industry experts forecast continued and rapid growth in the hemp market.
More than 2 billion cups of coffee are consumed daily, making it the second-most consumed beverage – and the second most traded commodity – worldwide. Laguna's unique hemp coffee products will allow its affiliates to harness this lucrative consumer habit.
In recent years, the emergence of energy drinks has slowed the coffee industry's performance, though the single cup serving market, of which Caffe is a part, has maintained steady growth, rising above 32 percent market share as of January 2014, according to Mintel Research.
The global wellness industry is a $3.4 trillion market. In a nutshell, wellness can be defined as a state of complete physical, mental, and social well-being. It goes beyond mere freedom from disease of infirmity and emphasizes the proactive maintenance and improvement of health. Expressed on a continuum that extends from reactive to proactive approaches to health, wellness falls firmly on the proactive side, incorporating attitudes and activities that prevent disease, improve health, enhance quality of life, and bring a person to increasingly optimum levels of well-being.
Pro369 fits well into this category, catering to the growing number of individuals looking for products to complement and supplement a healthy lifestyle.
In early 2016, Laguna signed an MOA with the National Hemp Association, Inc., a Colorado-based non-profit trade association that supports the growth and development of all aspects of the industrial hemp industry. The NHA is dedicated to the reintroduction of hemp as a mainstream agricultural commodity and cash crop to provide jobs and economic development for farmers. The NHA currently has an electronic database of 2,300+ supporters plus a social media following of over 23,000.
As part of this vital industry partnership, the NHA will include Laguna on its website and in monthly e-newsletters, and Laguna will endorse the NHA association and provide a link for the NHA in its corporate website.
Laguna's visionary management team has extensive experience in the network marketing business. Company CEO Stuart Gray has a 20-year background in investor relations, public relations and network marketing. Gray and his spouse own 18.5% of the outstanding shares (mostly escrowed). The high equity interest demonstrates management's commitment to the company, and aligns management and investors' interests.
Laguna's leadership also includes:
- Award-winning (Skype API Developer Award 2005 & 2006) tech officer with eight years of experience as web developer, project manager and network architecture.
Two executives, Stuart Kawasaki and Dennis Compo, have 25+ years each in corporate and marketing within the direct selling / network marketing industry.
Company President Ray Grimm has built three direct selling companies to $50 million within first five years and one to $100 million within first five years.
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The main markets currently for hemp are the health foods, functional foods, ingredients, natural body care and cosmetics, birdseed and pet/veterinarian markets. Currently, the principal hemp markets are for hemp seed. Hemp seed attracts commercial interest because of its high protein and essential fatty acid profile. Most hemp seed (whether in seed, oil, flour/powder or in finished foods) goes into the health food sectors. There is also a growing market in cosmetics and body care products for hemp oil.
Retail sales of all Canadian-derived hemp seed products are estimated to be as high as US $20-$40 million annually.
The Hemp Industries Associates ("HIA") estimates that the total U.S. retail value of hemp products in 2012 was nearly $500 million,which includes food and body products, clothing, auto parts, building, materials and other products.
Coffee is big business! By using people's habits, rather than changing them, we leverage everyday products to create an opportunity of a lifetime. Laguna's unique Hemp Coffee products will allow its affiliates to harness some undeniably lucrative megatrends. How would you like to benefit every time your friends and family drink something they already drink regularly, and give them a much healthier alternative?
Wellness can be defined as a state of complete physical, mental, and social well-being. It goes beyond mere freedom from disease of infirmity and emphasizes the proactive maintenance and improvement of health. Expressed on a continuum that extends from reactive to proactive approaches to health, wellness falls firmly on the proactive side, incorporating attitudes and activities that prevent disease, improve health, enhance quality of life, and bring a person to increasingly optimum levels of well-being.
Pro369 – Is an infused plant based functional beverage. Pro369 combines, HempOmega®, Hemp Protein and Ginseng.
This unique single serving "on-the-go" hemp protein is served cold and comes in 4 delicious flavors.